Increase your capital gains rate box by the state income tax rate.
Increase your state income tax rate is 7% and your clients’ federal capital gains tax rate is 15%, then you’ll put 22% in your capital gains rate box.

Please note: there is not a federal capital gains tax deduction for the state income tax paid as there is for federal income tax.  See the calculation below:

This first part the software handles automatically.

INCOME TAX

[ezcol_1half]Federal Income Tax Rate 
Federal Capital Gains Tax Rate
State Income Tax Rate
[/ezcol_1half]15% 
15% 
7%
[ezcol_1half_end][/ezcol_1half_end]

[ezcol_2third]Marginal Federal Income Tax = 15 * (1-.07)
State Income Tax
Total
[/ezcol_2third] [ezcol_1third_end]= 13.95%
= 7.00%
= 20.95%
[/ezcol_1third_end]

This second part you must put in MANUALLY.

CAPITAL GAINS TAX

[ezcol_1half]Federal Capital Gains Tax  Rate
State Income Tax Rate
Total
[/ezcol_1half]= 15%
= 7%
= 22% [ezcol_1half_end][/ezcol_1half_end]

Again you’ll put 22% in your Capital Gains Rate BOX